Tuesday’s talks—first in months—hint at hope. Speaker Nancy Pelosi hosted Senate Majority Leader Mitch McConnell, Senate Minority Leader Chuck Schumer, and House Minority Leader Kevin McCarthy yesterday to negotiate a spending and relief deal. Pelosi also talked at length with Treasury Secretary Steven Mnuchin this week.
TPC’s Matheson: Biden’s corporate tax proposals are an efficient and progressive revenue raiser. TPC’s Thornton Matheson explains why raising the federal corporate income tax rate from 21 percent to 28 percent and offering a 10 percent “made in America” tax credit for qualifying domestic manufacturing investments would be relatively efficient and progressive.
Congress could fix the ACA’s individual mandate no matter how the Supreme Court rules. The high court will rule soon on whether the Affordable Care Act’s individual mandate for insurance coverage is constitutional. But TPC’s Gene Steuerle writes there’s a simple way to enforce a mandate that avoids legal problems. His idea: Make certain federal tax benefits contingent on having health insurance. “Since eligibility for almost every government tax benefit already is based on taxpayers engaging in certain behavior, such a step likely would make the debate over when a mandate is a tax, a tax a mandate, and at what rate does one convert into the other, disappear”
One Seattle restaurants group backs the JumpStart tax. Seattle Restaurants United blasts the local Chamber of Commerce for suing to block the city’s tax on higher salaries paid by larger companies. The restaurant group says the tax is one of the few sources of city revenue that will help small businesses and workers affected by COVID-19.
Oregon businesses will not have to pay penalties or interest on 2019 income tax due. Governor Katie Brown announced the tax relief for small businesses this week. The new provisions apply to personal income, corporate excise, and corporate income taxes. The Oregon Department of Revenue will waive all penalties on 2019 income taxes due from pandemic-impacted businesses. Likewise, it will waive interest on 2019 income tax for impacted businesses with less than $5 million in gross receipts.
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